Apple 1995 Annual Report Download - page 56

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Division Performance Measurements
Division Performance Measurements will be Units, Operating Margin, Net Inventory Turns and Days Sales Outstanding. If the threshold is
met, it will be multiplied by a percentage from 50% through 175% depending on Division Performance. If the threshold is not met, there will
be no payout for that performance segment. .
The bonus payouts at various achievements against plan for the Units, Operating Margin, Net Inventory Turns and Days Sales Outstanding
segments are shown in the tables below. Actual payouts between those shown will be calculated on any actual incremental % achievement
against plan.Plan numbers and actual performance will be monitored by the World Wide Planning Group
If for any reason, there is a significant change in a Division's plan during the plan payment period, upon joint recommendation of Human
Resources and World Wide Planning and with the approval of the Chief Executive Officer, plan targets may be changed or another alternative
may be implemented.
If for any reason, including reorganization, a Division Business Measurement is no longer applicable for the entire payment period, the
Division Business Measurement will be replaced by the higher Division, Geography or Corporate Business Measurement.
Units Segment
This segment will measure quantity of Units achieved to Plan. The minimum threshold percent against plan is 98.8%. When the minimum
threshold is reached, a bonus is paid equal to 50% of the Units bonus target. When 100% of the target is reached, a bonus equal to 100% of the
Units portion of the target bonus is payable. At 105.5% of the Units target, the bonus payable equals 175% of the Units portion of the target
bonus. Actual payouts may, therefore, range from 0% to a maximum of 175% of the Units portion of the target bonus.
PAYOUT TABLE: UNITS
Operating Margin Segment
This segment will measure Operating Margin achieved to Plan. The minimum threshold percent against plan is 90%. When the minimum
threshold is reached, a bonus is paid equal to 50% of the Operating Margin bonus target. When 100% of the target is reached, a bonus equal to
95% of the Operating Margin portion of the target bonus is payable. At 130% of the Operating Margin target, the bonus equals 175% of the
Operating Margin portion of the target bonus. Actual payouts may, therefore, range from 0% to a maximum of 175% of the Operating Margin
portion of the target bonus.
53
% to % Bonus % per each
Plan Payout Point
MAXIMUM 105.5% 175% 11.36%
103.3% 150% 15.15%
PLAN 100% 100% Accelerator
Decelerator
THRESHOLD 98.8% 50% 41.67%
less than 98.8% 0%